Ford dealers have started taking orders for the 2013 Ford C-Max Hybrid, the company announced today.

The gas-electric hybrid will arrive later this year with a starting price of $25,995, undercutting its most direct competitor, the Toyota Prius V hybrid, which has a base price of $26,550.

"C-Max Hybrid offers better fuel economy, performance, technology and functionality than Prius V – and C-Max Hybrid customers will pay less at the dealership and at the pump," said Ken Czubay, vice president, U.S. Marketing, Sales and Service, in a press release.

More importantly, Ford will provide some stiffer competition for Toyota, which has ruled the hybrid market, selling 77 percent of all hybrids in the U.S. this April. The C-Max will only be offered in the U.S. as a hybrid, similar to Toyota's Prius strategy. There will also be an all-electric version, known as the C-Max Energi, that arrives this fall.

Ford sells the C-Max, which is built on Ford's compact car platform, in Europe as a gas powered model. Since introducing this utility vehicle in 2010, Ford has sold more than 150,000 C-Max vehicles in Europe.

that might actually do pretty well - but the fact that this is the first model of the series will be a drawback until it get's a foothold on current and soon to be hybrid owners. I don't think Toyota has anything to worry about...yet.

C-Max also has more powerful engine... i wonder what will the base features be, as Prius v is pretty well equipped, with display audio 6.1" multimedia with backup camera standard, as well as smart entry.

Are the Ford C-max units for Stateside...........imported from Valenica, Spain?

To be honest, I can't see how the Ford can be priced lower than the Prius V unless there is subsidy.........or they build it locally (i.e. Michigan)

"For the North American market, the C-Max Energi and C-Max Hybrid will be assembled alongside the 2012 Focus and Ford Focus Electric at Ford's Wayne plant in Michigan. All European versions will be built in Valencia, Spain."

Pay less at the dealer & at the pump.......what about cost to maintain it. I hope its as reliable as the Prius

Other smaller Ford hybrids (Fusion, Escape, etc...), according to Consumer Reports, have been at least reasonably reliable, especially the Fusion.

If Ford can undercut (or even equal) the Prius V's pricing, then I agree.....the choice might be a no-brainer. But, of course, the real price on any hybrid is what you will actually pay out the door (some hybrids, of course, get dealer-mark-ups, especially with high gas prices generating demand).

I haven't had a chance to drive the C-Max, but I did get to sit in one and examine it at the D.C. Auto Show last January (it was locked up, and I practically had to bribe the Ford reps there to briefly open it up for me)

I plan to test-drive a C-Max when it is released, and will do a full review/write-up if any interest is shown.